Japanese Firms Boosting Real Estate Investment in London

London, Oct. 1 (Jiji Press)–Japanese companies have been stepping up real estate development and investment in Britain, particularly in London, in recent years in an effort to expand profits overseas as they face a slowing market in Japan. Office demand in London is expected to remain robust amid chronic supply shortages. The British real estate market is expected to grow at an annual average of 3 pct, according to research firm Mordor Intelligence. Yutaka Hayasaka, managing director at Nomura Real Estate UK Ltd., highlighted the appeal of investments in properties in London. The London real estate market has “high liquidity and an inflow of investment money from abroad and offers potentially high-return opportunities,” Hayasaka said. Nomura currently handles three office buildings in the West End area, where the vacancy rate is relatively low. The company plans to continue real estate investment in London. “It’s become very important to create attractive offices,” Shinichi Kagitomi, head of Mitsubishi Estate London Ltd, said, referring to moves by companies to promote a return to office work after pandemic-era remote working. Mitsubishi broke ground in late September on an office building in central London, which will feature terraces and balconies on all floors. The company expects strong demand for the building. Smaller Japanese real estate firms are also entering the British office market. In March, Sotetsu Group and Yasuda Real Estate Co. formed a joint venture to take part in an office building project in London. In June, Daibiru Corp., a Mitsui O.S.K. Lines Ltd. unit, acquired a building complex. “There are few good investment opportunities in Japan, and attention is focused on Britain, which offers stable returns and lower risks,” said Shigeki Nakajima, director at British real estate firm Savills. END [Copyright The Jiji Press, Ltd.]